Excellent, thanks Andy, so pleased! Would you mind explaining how to add subdivision for me please? I had a play around with dials but can't seem to get rid of the weird folds, not too sure what I'm doing, just trial and error for me at the moment.

The weird folds comes from the lack of details in the mesh, so you can't solve that through the cloth room it self. Here is an illustration:

As you can see if you try to bend a plane with only 2 polygons, it will only be able to bend at the middle, which will result in a sharp fold, which is what you experience, as the subdivision is increased you get a smooth bending, which will be the same for making folds in cloth as there are more mesh details for the cloth simulation to work with, thats the only way you can solve you problem.

The last image show where you can increase sub division in Poser. However keep in mind that this might not be a good solution as it applies it to the whole object, which means that to solve the fold problem, you will increase the amount of polygons so much that your simulation time will be so high that simulating cloth will be a pain in the butt. Besides that you might risk ruin details in the cloth, because of the smoothing.

The only real solution is that the cloth you are using are designed correctly for dynamic simulating. If you made the set your self, you can of course fix it in the 3d software you use, or if you know how to work with a 3d app, you can load in the obj and fix it as well. But its one of the most important things, if not the most important thing when making dynamic cloth in my opinion, you have to design it specifically for that. You cant simply make it the same way as conforming cloth, it wont be good.

But you can try to increase the sub d. But keep in mind that increasing this to much will most likely crash Poser and make simulation time so high that its no longer fun :)